Simulation of two-area AGC system in a competitive environment using reduced-order observer method

In this paper, a reduced-order observer controller is proposed to solve the automatic generation control problem in a deregulated power system that operates under deregulation based on the bilateral policy scheme. In the practical environment (real world), access to all of the state variables of system is limited and measuring all of them is also impossible. So when we have fewer sensors available than the number of states or it may be undesirable, expensive, or impossible to directly measure all of the states, using a reduced-order observer is proposed. A proposed design, which is presented in this paper, has been developed in order to over-come this problem. The proposed strategy is tested on a two-area power system and compared with the optimal full-state feedback method by means of simulation. The results are shown that this method improved the dynamic response of system and provides a control system that satisfied the load frequency control requirements.